American Financial Group

Stock Symbol: AFG

580 Walnut Street Floor 7 West
Cincinnati, OH 45202
800-748-7848 (phone)

Website: AFG

Index Membership: S&P 400 Mid Cap; S&P 1500 Super Comp

Industry: Insurance (Prop. & Casualty)

American Financial Group Description:
American Financial Group, Inc. (NYSE/NASDAQ:AFG) is a holding company based in Cincinnati, Ohio and has been in business for more than four decades. Our insurance roots go back to the 1800’s with the founding of Great American Insurance Company in 1872. Today, through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance (“P&C”), focusing on specialized commercial products for businesses, and in the sale of traditional fixed, indexed and variable annuities and a variety of supplemental insurance products. AFG’s purpose is to enable individuals and businesses to manage financial risk using insurance products and services tailored to meet their specific and ever-changing risk exposures. AFG’s strategy is to allocate capital to insurance operations which management believes offer a competitive advantage or unique opportunities.

American Financial Group Financial Summary:
Oct. 29, 2007--American Financial Group, Inc. (NYSE:AFG) (NASDAQ:AFG) today reported net earnings of $112.7 million ($0.93 per share) for the 2007 third quarter. These results reflect higher earnings from the company's property and casualty insurance operations. Net earnings for the first nine months of 2007 were $293.3 million ($2.40 per share). AFG's net earnings for the three and nine month periods of 2006 were $93.5 million ($0.77 per share) and $317.9 million ($2.64 per share), respectively.

Core net operating earnings were a record $116.9 million ($0.97 per share) for the 2007 third quarter, up 22% from the comparable period a year earlier. This increase resulted primarily from improved underwriting profit within the specialty P&C operations and higher investment income. Core net operating earnings for the first nine months of 2007 were a record $342.8 million ($2.81 per share), compared to $275.9 million ($2.29 per share) for the comparable 2006 period.

American Financial Group Business Summary:
American Financial Group, Inc., through its subsidiaries, underwrites property and casualty insurance products in the United States. It also sells various retirement products, primarily fixed, indexed, and variable annuities; life; and supplemental health insurance products. The company primarily offers property and transportation insurance that comprise inland and ocean marine products, agricultural-related products, and commercial automobile insurance; specialty casualty products, which consist of executive and professional liability, umbrella and excess liability, and excess and surplus; and specialty financial products that include fidelity and surety bonds, and collateral protection; as well as and workers' compensation. It serves individuals, families, associations, and small businesses through independent property and casualty insurance agents and brokers. The company was founded in 1872 and is based in Cincinnati, Ohio.